Fashion platform The Iconic is the first subsidiary across Global Fashion Group’s portfolio to record new and reactivated customers outpacing churned customers since its downturn began.
It comes as The Iconic records its slowest rate of net merchandise value (NMV) decline since the first quarter of 2023, with its Q3 NMV falling by just 0.9 per cent year-on-year.
According to GFG, its two largest markets - Brazil and Australia - have achieved this turning point in the third quarter, with its Latin American subsidiary Dafiti recording a 1.3 per cent fall in NMV.
The slow NMV declines at The Iconic and Dafiti have driven a total NMV decline for GFG of 3.8 per cent, well above the 19.4 per cent decline in the third quarter of 2023.
The slow NMV across the board was offset by a 12.1 per cent fall in NMV in its South East Asian platform Zalora.
Total revenue for GFG has also slowed, down 3 per cent in the third quarter this year compared to a 25 per cent fall in Q3 2023.
Meanwhile, GFG gross margin is up at 44.6 per cent, above the same time last which was then 42.1 per cent, with adjusted EBITDA margin of negative 4.7 per cent. This comes as the group executed a total cost base reduction of €8 million (A$13 million), or 7 per cent year-on-year.
“As we enter our peak trading period, I’m pleased by the substantial improvements in gross margin and profitability we’ve achieved year-to-date,” GFG CEO Christoph Barchewitz said.
“Our Q3 results highlight our commitment to operational efficiency and ability to capitalise on returning consumer demand. We’re encouraged by our improving customer and topline indicators and are focused on executing our key Q4 events to finish the year strongly.”
For full-year 2024, GFG continues to expect an 8-12 per cent decrease in NMV on a constant currency basis, implying an expected NMV range of €1,100 to €1,160 million when accounting for year-to-date exchange rate movements.